New $8,000 Tax Credit Now Available
The new tax credit is equivalent to 10% of the purchase price of the home, capping at $8,000. The purchase must be made on or after January 1st, 2009 through December 1st, 2009. This only applies to first time home buyers. First time home buyers are considered those who have not owned a home for three years. The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit. Married couples need a gross income of $150,000. Those earning more may be eligible for reduced credits. Their new home has to be their principal residence for three years. Those who sell before three years will have to pay the entire tax credit back to the government.
To compare the difference between the new tax credit and the previous tax credit, please click here.